What is a B lender and what does it cost me?
A lender that takes borrowers the banks decline, at a higher rate plus a lender fee of roughly one percent of the loan. It is a two or three year bridge back to A pricing, not a destination.
B lenders are trust companies and specialty lenders that underwrite the story rather than the ratios: self-employed income that does not show on a T4, a recent credit event, a rental portfolio, new-to-Canada income history.
Expect a rate premium over A pricing plus a fee deducted from the advance, and often a shorter term. Some also require a larger down payment.
Used properly it is a plan with an exit: you go B for a term while you build two years of filed self-employed income or repair your credit, then switch to A at renewal. Used without a plan, it renews at B pricing indefinitely, which is expensive. Ask at the outset what specifically has to change for you to qualify as A next time.
Answer it with your own numbers
You will need: annual income, monthly debts, down payment, credit tier.
See what each tier costs on your fileNext questions
What credit score do I need to buy a house?
Two different thresholds get confused here. The mortgage insurers set a minimum credit score of 600 for an insured mortgage. A lenders set their own bar, commonly in the high 600s, which is a pricing preference rather than a rule.
Canada-wide
I am self-employed. Can I still get a mortgage?
Yes, and the constraint is documentation rather than income. A lenders generally want two years of filed returns and use your net taxable income, which is the number your accountant has spent years minimizing.
Canada-wide